Increase of 2% Indicates a Slowdown Toward End of Quarter

J.C. Penney Co. failed to meaningfully improve sales in the fourth quarter, renewing fears about the company and sending its stock sinking to just above $5.

Penney said sales by one key measure rose just 2% in its fiscal fourth quarter. The results, which exclude new and closed stores, fell well short of the 4% gain that analysts had been expecting and raised questions about whether the company would be able to climb out of the hole...